New TNB Electricity Tariff Structure From July 1, 2025

According to Tenaga Nasional Berhad (TNB), over 23.6 million electricity users in Peninsular Malaysia are set to experience a fairer and more transparent billing system with the implementation of a new electricity tariff structure effective July 1, 2025. 

This change, approved by the government under the Regulatory Period 4 (RP4) and regulated by the Energy Commission (ST), is aligned with Malaysia’s National Energy Transition Roadmap (NETR) and aims to encourage sustainable energy practices among domestic and non-domestic users.

At the heart of this restructuring is a more transparent billing format. Customers will now receive itemised bills with clearer breakdowns indicating what they are paying for across four core components: the energy charge, the capacity charge, the network charge, and the retail charge.

In addition, the previous Imbalance Cost Pass-Through (ICPT) mechanism has been replaced by the new Automatic Fuel Adjustment (AFA). This adjustment is carried out monthly based on current global fuel prices and foreign exchange rates, making it more responsive and timely.

AFA ensures that electricity pricing reflects actual market conditions while preventing sudden shocks from large tariff hikes.

Usage Based Two-Tier Tariff System 

Under the new structure, domestic consumers are now categorised based on total monthly consumption. Those who consume 1,500 kilowatt-hours (kWh) or less per month will enjoy lower energy charges, while those exceeding that threshold will be charged at higher rates.

For example, households using 1,500 kWh or less will be charged an energy rate of 27.03 sen per kWh, while those exceeding that will pay 37.03 sen per kWh. All users continue to pay a capacity charge of 4.55 sen per kWh and a network charge of 12.85 sen per kWh. The monthly retail charge of RM10 is maintained, although it is waived for households consuming 600 kWh or less per month.

Now taking EV charging energy cost into context as an example, say a XPeng G6 580 Pro (66kWh battery) owner who charges five times a month will pay about RM17.80 per charge under the lower tariff (27.03 sen/kWh) or RM24.44 under the higher tier (37.03 sen/kWh) - totaling RM89 vs RM122 monthly for five charges.

Flexible Time-of-Use (ToU) Tariff Now for Households

A key improvement is the expansion of the Time-of-Use (ToU) scheme to residential customers. Previously limited to non-domestic users at medium and high voltage, this scheme now includes domestic and low-voltage users who have installed smart meters.

Under the new ToU framework, electricity is priced based on the time it is used. Peak hours, from 2:00PM to 10:00PM on weekdays, incur higher charges, while usage during off-peak periods (10:00 to 2:00PM on weekdays and all day on Saturdays and Sundays) will enjoy lower rates. 

For example, a household consuming less than 1,500 kWh per month will pay 28.52 sen per kWh during peak hours and 24.43 sen during off-peak hours. Those exceeding the 1,500 kWh threshold will pay 38.52 sen during peak and 34.43 sen during off-peak hours.

Using the same example earlier, an XPeng G6 580 Pro owner on the lower tariff tier would pay RM18.82 per charge during peak hours (RM94.10 for five charges) and RM16.12 per charge during off-peak hours (RM80.60 monthly). On the higher tier, the cost rises to RM25.42 per charge during peak hours (RM127.10 monthly) and RM22.72 per charge off-peak (RM113.60 monthly).

From this example it is evident that the energy cost under the ToU tariff will offer substantial savings for the right users compared to the general two-tier system. This is technically to incentivise consumers to shift their major electricity usage such as home EV charging in our case to off-peak periods, ultimately reducing strain on the grid.

However do take note that ToU has to be opted in, so users who are interested would need to head down to a Kedai Tenaga branch to switch over. Additionally ToU for now only applies to domestic users therefore there will be no cost savings for public EV charging yet. 

Incentives for Energy Efficiency

To further encourage conservation, the government is introducing the Energy Efficiency (EE) Incentive. This applies to domestic users consuming up to 1,000 kWh per month, as well as low-voltage commercial users using 200 kWh or less.

The incentive amount varies based on usage, rewarding lower consumption with higher savings. The initiative is expected to shield most low to moderate usage households from significant impact under the new structure.

What Consumers Should Expect in July

To facilitate a smooth transition, TNB will issue a blended bill in July 2025. This bill will reflect electricity usage charged under the old rate (up to June 30) and the new tariff (from July 1 onwards). From Aug, all bills will fully adopt the new structure.

Consumers can use the online electricity bill calculator which will go live from June 23, 2025 at www.mytnb.com.my/tariff to estimate their future electricity costs. Those with smart meters can also track daily usage and set consumption budgets via the myTNB mobile app or portal.